Formula for offer price?

[Paul Argenbright]

I read Ken McElroy's book the ABC's of REI and he wrote about how he figures the value of a property. There was an equation he uses but I can't remember what it is and I don't have his book. Does anyone know that equation, or another way to figure what a property is really worth?

[Doug Johnson]

A 15 CAP seems very high unless it is a "D" property. Have you looked at the P&L to verify the rents, expenses and NOI? I would be glad to help you with the valuation. Just send me a PM.